CHALLENGES FACED BY SMALL BUSINESS ENTREPRENEURS IN DIGITAL FINANCIAL TRANSACTION SYSTEM

Abstract

The rapid adoption of digital payment systems, including mobile payments, e-commerce transactions, and digital wallets, has transformed the way small businesses manage financial transactions. While these advancements provide enhanced convenience, accessibility, and efficiency, they also present unique challenges for small business entrepreneurs. These challenges primarily stem from the cost constraint and limited budgets, cybersecurity risks, lack of technical expertise, and the evolving regulatory landscape. This paper explores the difficulties faced by small business entrepreneurs in navigating these digital financial systems, particularly in ensuring secure, transparent, and compliant transactions. It examines how emerging technologies such as blockchain, big data analytics, and artificial intelligence (AI) can offer solutions by improving transaction tracking, identifying discrepancies, and enhancing fraud prevention. However, small businesses often struggle with limited resources and expertise to fully leverage these technologies. The paper also highlights challenges related to data privacy, managing cross-border transactions, and adapting to constantly changing digital payment trends. By discussing these challenges, this paper underscores the need for small businesses to adopt a combination of technological tools, training, and expert support to ensure secure and efficient management of digital financial transaction.